President Donald Trump has signed an executive order establishing a Strategic Bitcoin Reserve, aiming to position the United States as a leader in the rapidly evolving cryptocurrency landscape.
The reserve will be funded exclusively with Bitcoin seized in criminal and civil forfeiture cases, ensuring no cost to taxpayers. White House AI and Crypto Czar David Sacks emphasized that the U.S. will not sell any Bitcoin deposited into the reserve, likening it to a “digital Fort Knox” that serves as a permanent store of value.
The executive order also mandates a comprehensive audit of the government’s digital asset holdings, which Sacks estimates include approximately 200,000 Bitcoin. This move is part of a broader strategy to harness the potential of digital assets for national prosperity.
In addition to Bitcoin, the order establishes a U.S. Digital Asset Stockpile to manage other seized cryptocurrencies, such as Ethereum, XRP, Solana, and Cardano. The Treasury and Commerce Departments are tasked with developing budget-neutral strategies for acquiring additional Bitcoin, provided these strategies do not impose incremental costs on taxpayers.
This initiative represents a remarkable turnaround for President Trump, who just four years ago referred to Bitcoin as a “scam.” His administration’s current efforts to integrate cryptocurrencies into national financial strategies underscore a significant evolution in policy.
The establishment of the Strategic Bitcoin Reserve is expected to legitimize and diversify the nation’s financial assets. However, the announcement led to a decline in cryptocurrency prices, as investors were disappointed by the lack of new government purchases.
The executive order precedes the White House’s first-ever Crypto Summit, scheduled for Friday, which will include crypto industry leaders and members of the Presidential Working Group on Digital Assets. The summit aims to foster dialogue between the government and the cryptocurrency industry, addressing regulatory challenges and exploring opportunities for innovation.
While the creation of the reserve is a significant step, some industry participants hoped for more aggressive actions, such as direct government purchases of Bitcoin. The executive order signifies progress but does not fully satisfy desires for a robust Bitcoin accumulation strategy by the U.S. government.
Overall, the establishment of the Strategic Bitcoin Reserve marks a pivotal moment in U.S. financial policy, reflecting a growing recognition of the importance of digital assets in the global economy.
